Sounds like a heck of a deal for $600, I'd go for it.
The 3 pt might be something simple but even if it's not you can rebuild the pump and replace a lot of the major parts pretty reasonably. All the parts are available on this site. I just rebuilt the 3 pt on my 202 which is for all intents the same lift system.
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Today's Featured Article - New Life for an Old Allis - by Tyler Woods. My friend Jon, has an old '39 Allis Chalmers B. He thought it a marginal tractor that had long since served its time. She smoked terribly and never had much power but he couldn't afford another so he was limping along with what he had. Jon's Allis has a small front loader and though it doesn't carry much, it serves his needs. It was the hard starting and low power that made him think it was time to replace the old girl. Jon called me to help him discover why his tractor wouldn't start
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